Question

Dissolution expenses paid by purchasing company are debited to account in purchase​

Answer 1

Answer:

this is the answer for the question

Answer 2

Answer:

The correct answer of this question is a Realisation Account is to be debited.

Explanation:

Given - Dissolution expenses paid by purchasing company.

The Realisation Account will be deducted when dissolution expenses are paid. These are business expenses that should be covered by the company.

Dissolution Expenses are defined as the sum of the expenses reasonably likely to be incurred in connection with the discharge of this Indenture, the liquidation of the Collateral, and the dissolution of the Issuers, plus any accrued and nonpayment Admin Costs, as certified by the Collateral Manager.